Envista’s first quarter results were met with a positive market reaction, reflecting better-than-expected revenue and adjusted earnings per share. Management credited stable demand in core categories like consumables and premium implants, as well as effective price capture across most geographies, for the solid start. CEO Paul Keel highlighted ongoing operational improvements, including enhanced customer service and cost management, noting, “We delivered growth across most of the portfolio, including consumables and Nobel Biocare, as well as Ormco, excluding China.” The company also benefited from G&A productivity gains and continued Spark margin improvement.
Is now the time to buy NVST? Find out in our full research report (it’s free).
Envista (NVST) Q1 CY2025 Highlights:
- Revenue: $616.9 million vs analyst estimates of $608.3 million (1.1% year-on-year decline, 1.4% beat)
- Adjusted EPS: $0.24 vs analyst estimates of $0.20 (17.1% beat)
- Adjusted EBITDA: $79 million vs analyst estimates of $76.37 million (12.8% margin, 3.4% beat)
- Management reiterated its full-year Adjusted EPS guidance of $1 at the midpoint
- Operating Margin: 6.3%, down from 7.7% in the same quarter last year
- Constant Currency Revenue was flat year on year, in line with the same quarter last year
- Market Capitalization: $3.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Envista’s Q1 Earnings Call
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Jon Block (Stifel) asked about tariff exposure and mitigation specifics. CEO Paul Keel detailed supply chain adjustments, including shifting implant manufacturing to Sweden and qualifying new suppliers, stating the company is “in pretty good shape” to manage risks.
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Jason Bednar (Piper Sandler) pressed for clarity on the net impact of tariffs and confidence in full-year mitigation. Keel noted current guidance includes known impacts, but admitted “the error bars here are wider,” reflecting uncertainty, while reaffirming that mitigation plans are in motion.
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Elizabeth Anderson (Evercore ISI) inquired about China’s VBP timeline and its effect on guidance. Keel responded that VBP is proceeding as expected, with a soft first half in China brackets and wires, and potential for a volume benefit later in the year.
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Jeff Johnson (Baird) questioned pricing power amid tariffs and customer price sensitivity. Keel characterized pricing as stronger in differentiated products and more challenging in commodity categories, emphasizing varying dynamics by region and customer type.
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Allen Lutz (Bank of America) asked about the Challenger implant line’s softness and outlook. Keel and Hammes attributed Q1 weakness partly to fewer billing days, but expect steady progress for both premium and Challenger lines through the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the effectiveness of Envista’s supply chain shifts and tariff mitigation efforts, (2) the progression and impact of VBP policy changes in China’s orthodontics market, and (3) whether ongoing cost reduction and restructuring initiatives translate into sustained margin improvement. Updates on Spark profitability and demand trends in consumables will also serve as key markers of execution.
Envista currently trades at $19.35, up from $16.33 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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